Blog > Advertisement is a good alternative revenue model for Fantasy Sports system

04/08/2016

With no doubt, launching and running any business means making money from it. And the more effective business is, the more money the owner (or owners) get. It is hard to imagine any kind of other mission for business.

Fantasy Sports stands apart from other businesses. With all elements of a common sense business, Fantasy Sports has several absolutely unique internals that differ it from others. And enormous attention and attractiveness around this business make it very interesting for start-uppers and venture funds. This business is growing very quickly, amount of money passing through it is huge, but is it easy to earn money on it?

Those who are looking for starting a Fantasy Sports business are pondering over how to build the effective revenue strategy and be profitable. Obviously, Fantasy Sports systems have classical revenue model - paid participation in contests where payments constitute the bank of prizes. A lot of business owners are oriented on this model, but in real life it is not always showing great results in particular cases. Different conditions, difference in market reactions, diversity of users and their culture, income and willing to spend money online and even availability of payment processing options - this is a short-list of impact factors of income from the Fantasy Sports system.

This is a difficult question that stops many people from making their dream real and they don't start their own Fantasy Sports business.

Let's ask a question - is this the only way to generate revenue from Fantasy System? Does it have only classical monetization approach or there is a space for alternative revenue models which can help generating more money?

Fantasy Sports is an online business and has the same specifics as other online businesses. Taking existent tested and verified models is a great opportunity to increase your income sources and, therefore, profit. The first and the most common model for online business is advertising. Ads is still the most profitable and widely spread model. Placing ads on website or mobile application is a normal case, and despite the fact that many users use adblockers, amount of clicks - and as a result, profit from ads - is still quite high comparing with investments. Fantasy Sports system can become a good platform for publishing ads, if you do it wisely and in a proper way. Let's review pros and cons of this model:

Pros:

there is no need to take money from your users. You can generate income without even having a payment functionality on your website. Very promising for developing markets (LatAm, Africa) where users are not ready to spend money on games

lower amount of money to be invested in the project: you won't probably need some features, and integrating ads from Ads Network (like AdSense) doesn't cost a lot and takes not much time

predictable type of audience - sports addicted people. Ads can be specific, dedicated to the audience - and that will increase the CTR and other qualities of ads and bring you higher profit

Cons:

in order to earn from ads, you need to generate high traffic on your website. Fantasy Sports systems are super popular now and promoting it can be a bit easier than promoting for example social network, but still, having only 100-200 users, the income from ads will be very low

if ads are too annoying, you can lose your audience. System owner should be careful with ads placement - organic placing of the ads even increases the number of clicks

Ads, perceived negatively, is still a very good option to make money from, especially if you apply an appropriate strategy of selecting ads and placing it. Fantasy Sports is a good platform for running ads. Users are spending time on it (it is not a 30 seconds visit) on playing the games, and with wise ads placing you'll have income.

While building your revenue model be open-minded and your Fantasy Sports business will bring you success. And our team will help you!